Do you hear that sound? It's the sound of thousands of iPhone customers crying their hearts out. In addition to the new iPods,
ringtones for the iPhone and iTunes Wi-Fi Music Store, Apple has announced a
price cut for the iPhone.

Apple has dropped the 4GB model from the iPhone lineup. Its
sales have been lagging behind the more spacious 8GB model so Apple decided to remove the dead weight. In addition, Apple has cut the price of the 8GB iPhone by
$200 – the device will now retail for $399.

This move by Apple even undercuts the pricing for
refurbished iPhones that was announced in late August. Refurbished 4GB and
8GB iPhones were listed on the Apple Store for $399 and $499 respectively.

Apple is being quite aggressive with its iPhone and the $200
price cut leaves room for a 16GB model on the high end in the future.
Considering that the iPhone-esque iPod touch comes in a 16GB model, the move is
inevitable.